Thinking of buying a new car in 2021? We've compiled this condensed reference guide of help, hints and hacks to assist you with the lending side of the buying process. In addition, we have a number of self-serve resources available right here on our website. The fastest business car loan calculator allows you to generate quick rough estimates and shape how you might like your car finance structured. Our Lender Comparison chart allows you to compare interest rates from a selection of our lenders and see how those rates might convert to repayments on your loan.
Our Jade Car Loans team stays across the motor vehicle market and we’re constantly posting new articles covering vehicle brands, lending issues, changes to government policy and other topics relevant to car finance. If self-serve is not for you or when you’ve completed your own browsing and research, our consultants are on hand to answer your queries and source you a cheap car loan.
Interest Rates
We’ll start with the biggie topic – interest rates. The RBA reduced the official cash rate several times in 2020 and 2021 starts with interest rates on lending at historic low levels. This scenario is expected to continue but the RBA board will be considering quarterly GDP figures, employment numbers and other economic indicators when they meet each month to consider any changes to interest rates.
All fixed business car finance rates at Jade Car Loans are set at a fixed rate, ensuring that any fluctuations in interest rates will have no impact on existing car loans
Personal Loans
The big issue for 2021 around consumer finance is the proposed changes to consumer credit laws flagged by the Federal Government for April 2021. We covered this in detail when it was proposed and we refer you to our earlier article for the detail.
The bottom line – the changes are designed to streamline the loan process and primarily address delays with home mortgages. When implemented, the changes may make the process of accessing consumer finance easier and smoother, especially for some applicants.
These changes will not impact our loan products. Our Jade Secured Car Loan is the most popular form of loan for private car buyers and the features will remain the same. By using Jade as your finance specialist to source and arrange your car loan you are always assured of a smooth, streamlined process.
Hint: have a read of our details on Novated Car Leasing with Salary Sacrificing. This is a finance product where an employee and employer enter an agreement to purchase a vehicle on behalf of the employee.
Business Vehicle Finance
Some of the major business tax measures announced in the 2020/21 Federal Budget are active and apply to eligible vehicles and eligible businesses. We’re talking the accelerated asset depreciation measures such as IAWO and temporary full expensing. Loss Carry Back may also benefit some businesses when buying new vehicles.
Chattel Mortgage is the most appropriate form of finance to take advantage of accelerated depreciation but Jade also offers Leasing and CHP. All our best business car finance products offer tax benefits. Speak with your accountant as to which will deliver the best outcome for your business set-up.
For businesses looking at providing cars to staff members in 2021, talk to one of our consultants about Novated Leasing with Salary Sacrificing as an option.
CTP and Insurance
If buying a new car, the dealer will usually arrange CTP when registering the car in readiness for delivery to you. CTP is highly competitive so if you are seeking a policy, it’s worth looking around to see how much you could save.
Ditto on car insurance. When taking out finance to purchase a car, lenders require you to take out a comprehensive car insurance policy. Insurers are highly competitive in this sector so do your homework but read the fine print carefully so you fully understand what you are getting and not getting.
2021 Dates to Diarise
- Car rego, driver licence and insurance renewals: there were many reports through 2020 of drivers being caught for driving unregistered vehicles. With many states moving to ‘no sticker’ rego, car owners are forgetting to renew rego. If your car is unregistered it can impact your insurance and result in hefty penalties from authorities. Same goes for renewing your driver licence and insurance policies. Put a reminder in your phone or diary NOW so you don’t get caught out.
- April: the proposed simplified laws around consumer lending are due to come into effect.
- May: Federal and state budget time. Keep an eye out for any new tax measures relevant to motor vehicle purchases which may be the incentive to buy.
- June: EOFY looming so it’s time to get your tax details ready.
- End June: time for EOFY car sales which is often a great opportunity to grab a bargain on new vehicles.
- New car releases: we don’t have a comprehensive calendar for new model launches but we have read news of plans by many manufacturers to release new models in 2021. Look out for plate clearance sales pre-launch.
- November: for motor racing enthusiasts, COVID-19 has caused the postponement of the Australian GP in Melbourne from March to November.
Sourcing Quotes on Cheap Car Loans
Whenever you choose to buy that new car, Jade Car Loans is on hand to source you the cheapest finance deal and save you a heap of time and hassle in arranging your loan.
To discuss a cheap loan on a new car, call Jade Car Loans at 1300 000 003
DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MISREPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCT SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.
